“Swapping” Your Valuable Possessions for Cash with an Asset Loan
What is an Asset Loan and how can I raise cash against my valuable possessions?
- With an asst loan you use your assets to raise quick cash
- The assets that can be “swapped” for instant cash
- Guidelines for qualifying for an Asset Loan
- Establishing the amount that can be borrowed
- Safekeeping of valuable possessions
- Understanding the terms and conditions of the contract
- Make sure the loan is from a NCR-registered provider
- Take a look at repayments in our loan example
- REMEMBER this is only a short-term solution
- Advantages of using Asset Loan service providers
Use your assets to raise cash
Asset Loans offer a quick, confidential and flexible line of credit against personally owned valuable assets.
These loans provide a solution for cash-strapped business owners and private individuals who do not qualify for traditional bank loans.
Applicants must be willing to use their assets as collateral for the loans and will qualify for the return of their valuables as soon as the loan amount has been fully repaid.
Unlike micro finance loans, there are no exorbitant fees or interest rates attached to Asset Loans as they are secured against the value of the assets relinquished for a cash injection.
What assets can be “swapped” for a cash loan?
Asset Loans can be obtained within a very short space of times by “swapping” personal possessions like fully paid luxury cars, high-end diamond and precious gem jewellery, boats, bikes and luxury watches.
Other lines of credit can be raised with income rental from primary and secondary properties, works of art and antique furniture.
Who qualifies for Asset Loans?
The following qualifying criteria apply to applicants for Asset Loans:
- South African citizens who own valuable assets that cannot readily be converted into cash
- Business owners who can prove positive cash flows
Successful applicants can raise cash within 24-hours.
There are no credit checks, proof of income or employment, or credit bureau involvement.
All applications are treated in the strictest of confidence.
Pegging the loan amount
Generally, Asset Loans are based on the value of the items submitted as collateral.
This can range from 50% to 70% of the value of the possession.
Asset Loan amounts can range from R10 000 to R5 million.
Safekeeping of valuables
Asset Loan financiers have storage facilities to ensure the safekeeping of all material possessions.
- Prestige and classic cars are stored in purpose-built and secure garages
- Diamonds, gold, jewellery and luxury watches are kept in purpose-built vaults
- Antiques, fine art and collectables are stored in humidity-and-climate-controlled facilities that include a 24/7 monitored alarm system with recorded CCTV surveillance and restricted log-in access
Understand the terms and conditions
- Generally, Asset Loans can be raised for a maximum of six months
- Interest rates are pegged at 20% in terms of the National Credit Act
- Loans are structured over a 30-day period and can be settled without penalty
- Borrowers should ensure that interest rates, finance charges and fees are detailed in the contract
- Minimum loan periods are generally two months
Deal with NCR-registered providers
Applicants should ensure that they only deal with companies who are registered National Credit Regulator loan providers.
These companies have to work according to the strict terms of the National Credit Act and comply with all State and local regulations.
According to the National Credit Act, the maximum interest rate for the first month of the loan is 5%, and then 3% monthly in a 12-month period.
Therefore, the maximum interest rate payable by a borrower cannot exceed 20%.
Example of repayments on a loan
Take a look at an example of repayments on a R10 000 loan.
- Finance charges: R500
- Once-off administration and initiation fee: R1 050
- Total cost to repurchase assets: R11 550
- Extended loan finance charges to a maximum of six months: R300
- Monthly admin fee: R60
The amount of the loan is based on the value of movable assets.
The value of the assets is assessed by appraisal experts at no additional cost to the applicant.
Short term solution
Applicants should bear in mind that Asset Loans are a short-term solution and should not be considered unless the loan amount can be repaid within no more than six months.
It offers a quick, efficient and confidential line of credit to individuals who would otherwise not qualify for a traditional bank loan.
There are no checks for:
Cash loans are made available immediately on approval of the application.
This can take place within 24-hours of applying for an Asset Loan.
Advantages of using Asset Loan service providers
Instead of approaching an Asset Loan company directly, applicants can choose to use the services of Asset Loan providers.
These companies value the assets and then seek the best loan available to suit individual needs.
Opting for the direct route, an applicant could find a lender willing to release cash funds against assets, but who may then not be willing to extend the loan repayment period.
If not given enough time to repay the loan, it could result in the borrower losing possession of the assets.
Asset Loan service providers only work with National Credit Regulator registered companies and will renegotiate a loan repayment option on behalf of the borrower.
They cater for the needs of all South Africans and will secure loans by “swapping” assets such as property, income streams, jewellery, art, antiques and luxury vehicles in exchange for cash loans.
Furthermore, these service providers will not send personal information to credit bureaus, as all loans are treated in the strictest of confidence.
While banks may not attach any value to personal assets, companies specialising in Asset Loans take possession of personal valuables in exchange for quick cash loans.
They will release up to R5 million in cash on valuable assets overlooked by a bank.
Asset Loans offer owners of valuable possessions an alternative method of cash flow at reasonable interest rate and cost levels.
Family heirlooms such as antique furniture and jewellery do not have to be sold outright and lost to future generations. Instead these can be “swapped” for cash and then reclaimed once the loan amount is settled.
Fees, finance charges and interest rates are clearly detailed in all contracts, ensuring that clients are fully aware of their financial repayment commitments.
Once the loan is settled, assets exchanged for a cash loan are returned to the owner.
Complete and send the form on this page to secure a loan
All info was correct at time of publishing